Foord International Feeder Fund
CLOSED TO NEW INVESTMENT
For conservative, absolute return-oriented investors in global markets
The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.
FOR SOUTH AFRICAN INVESTORS
• With a moderate risk profile
• Requiring diversification through investments not available in South Africa
• Seeking to hedge rand depreciation.
|Year||Fund Return %||Benchmark Return %||SA Inflation %|
|2006 (from 01/Mar)||24.9||28.4||5.0|
|2021 (to 31/Mar)||2.5||5.6||1.4|
To achieve meaningful US inflation-beating ZAR equivalent returns over a full investment cycle.
Longer than three years.
1 March 2006
R50 000 lump sum or R1 000 per month
The portfolio may only invest in cash and one other collective investment scheme.
The Foord International Fund, in which the fund invests, does not distribute its income.
Marginal to zero income yield as the Foord International Fund is a roll-up fund and does not distribute its income.
Fully invested in the Foord International Fund, sub-fund of Foord SICAV, domiciled in Luxembourg.
|Risk of loss||
Currency volatility means risk of loss in the short term is high. In general, the risk of loss is lower than that of the average foreign equity fund.
|Security description||Asset class||Market||Portfolio weight %|
|ETFS Physical Gold||Commodity||GB||6.6|
|Nagacorp 9.375% 21/05/2021||Bond||SG||5.9|
|CVS Health Corp||Equity||US||4.7|
|Roche Holding AG||Equity||CH||4.2|
|Wharf Real Estate Investment||Property||HK||3.9|
Monthly Commentary – March 2021
- Global equities (+2.7%) rose on expectations for accelerating global growth following vaccine rollouts—underpinned by further stimulus measures and ongoing accommodative monetary policy
- Developed market equities (+3.3%) rallied on stimulus announcements and higher bond yields—the stronger US dollar and emergence of more virulent COVID-19 strains weighed on emerging markets (-1.5%)
- Developed market bond yields rose again on higher inflation expectations—even as the US Federal Reserve downplayed inflation risks and reiterated its commitment to accommodative policy until unemployment and inflation exceeded its targets
- The dollar strengthened against the euro (-3.2%), Japanese yen (-3.6%) and British pound (-1.3%)—US economic data continued to surprise to the upside
- Industrial commodities oil (-3.9%) and copper (-2.2%) retraced on dollar strength—precious metals gold (-0.8%) and silver (-10.1%) declined on the opportunity cost of higher bond yields and the benign inflation outlook from central banks
- US agriculture company FMC (+9.2%), retail pharmacy chain CVS (+10.4%), Scottish energy multi-national SSE (+9.9%) and Chinese insurer PICC P&C (+14.8%) contributed the most to fund performance —Wharf Real Estate (-4.6%) and US miner Freeport McMoran (-2.9%) detracted
- The managers continue to favour equities over other asset classes—but remain cautious and partially hedged given lofty US equity valuations
- The rand (+2.3% vs the US dollar) bucked emerging market currency weakness as Q4 2020 GDP growth surprised—the lack of competitiveness and strained public finances continue to make the currency vulnerable over the longer term
The standard charge rate is a fixed fee of 0.35% plus VAT. A 1.00% annual fee is levied in the Foord International Fund.
WHAT IF YOU HAD INVESTED WITH US IN THE PAST?
Experience the compounding phenomenon of a sustained, long-term investment with Foord.